In the tenant-improvement file, a fixture allowance is $4,950. The owner selects fixtures costing $5,640, with no markup on allowance overages. What adjustment is needed?
Correct Answer
C) $690 increase.
The selected package is $690 over the allowance, so the increase is $690.
Why This Is the Correct Answer
The selected package is $690 over the allowance, so the increase is $690.
Why the Other Options Are Wrong
Option A: $690 credit.
$690 credit. is not aligned with the supported result for allowance reconciliation; it has the wrong label or classification even if the number looks close.
Option B: $640 increase.
$640 increase. is below the supported result for allowance reconciliation; it likely uses the wrong base, period, or account bucket.
Option D: $10,590 total.
$10,590 total. is above the supported result for allowance reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Allowance Reconciliation drawer for Reconciling Finish: label package before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Allowance reconciliation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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